Two Uber drivers charged over the weekend

Two Uber drivers were charged for allegedly not having a taxicab driver's licence on Saturday, the first day of an undercover city investigation looking at the ride-sharing app company that launched in Ottawa days ago.

Carys Mills

Updated: October 6, 2014

A study in New York found that yellow taxis lost about a million rides to Uber in areas outside the central core. However, ride-sharing services also "created" about three million new rides, suggesting that the services are capturing under-served markets. Ottawa Citizen

The dispute between the city and ride-sharing company Uber escalated over the weekend, when two drivers were charged as part of an undercover investigation.

The city intends to keep investigating after both drivers were charged Saturday with operating a cab without a taxi driver licence and says more bylaw charges are possible.

The drivers face fines of $650 each after undercover city employees booked rides through Uber’s app, which launched in Ottawa last week, said Susan Jones, Ottawa’s general manager of emergency and protective services. “Enforcement is underway as we speak and will continue to be,” Jones said Sunday.

Since Uber made it known last month that it was eyeing the capital, the city has maintained the company will be treated as a cab operation, requiring it to obtain a broker’s licence, hire licensed cab drivers and use vehicles licensed as taxis. But Uber disputes that, saying it’s a technology company, not a taxi firm.

Uber spokeswoman Lauren Altmin, who was aware of one charge Sunday afternoon, said the company will support the drivers financially. The company is still determining whether it will ask the drivers to go to court to fight the fines first, she said.

“Costly sting operations that seek to protect a monopoly that has remained unchanged for decades only hurts the consumers that have been asking for expanded transportation choices,” she said. “We don’t believe Ottawa citizens should be threatened or penalized for providing a safe and reliable ride to their fellow Ottawans.”

Uber was already in more than 200 other cities when it started up with free promotional rides in Ottawa last Wednesday. At the time, Jones said the city would start enforcing taxi rules when the free rides ended, since regulations only apply when a fare is charged.

But she said Sunday that enforcement started earlier because Uber was charging for rides costing more than $20. Uber has since extended the timeline for free rides costing less than $20 “until further notice.”

Altmin said the extension was planned before the charges.

More charges are possible against the two already charged, other drivers and the company, Jones said. She couldn’t specify the amount of city resources going toward policing Uber.

“Enforcement of illegal taxi cabs is just a regular part of our program,” she said. “So we’re just deploying resources from within the bylaw area.”

Two charges in one day is unusual, she said, adding illegal taxis aren’t usually in the open. “This probably represents the first time we’ve dealt with a company that’s actually publicly advertised that they were going to offer this business,” Jones said.

The names of the drivers won’t be released until the charges are filed in court, she said.

Mayor Jim Watson is among the municipal politicians who have backed city staff, saying Uber needs to follow taxi regulations. But Uber got some support from Foreign Affairs Minister John Baird over the weekend.

“75 minutes. 5 calls. No cab. Tonight I see the need for more competition with @Uber // @Uber_Ottawa #ottcity,” Baird tweeted on Saturday night.

Spokesman Rick Roth said Baird, Ottawa West-Nepean member of Parliament, wasn’t available to comment on Sunday. “He hasn’t used Uber yet – but probably would have come in handy last night,” Roth said in an email.

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